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CMA Final · Indirect Tax Laws and Practice · Manufacture in Bond

Under Section 73, when will the proper officer cancel a warehousing bond as discharged in full?

The proper officer cancels the bond only when the whole of the goods covered have been cleared for home consumption, exported, transferred or otherwise duly accounted for, and all amounts due on them are paid. Partial clearance or passage of time alone does not discharge the bond.

  1. AWhen half the goods are cleared and the duty on them is paid
  2. BWhen all goods covered are cleared for home consumption, exported, transferred or otherwise duly accounted for, and all amounts due are paidCorrect
  3. CWhen one year has passed since execution of the bond
  4. DWhen the importer applies, whether or not duty is paid

Explanation

Section 73 requires that the whole of the goods covered by the bond be cleared for home consumption, exported, transferred or otherwise duly accounted for, and that all amounts due on those goods be paid. Part clearance or mere lapse of time is not enough.

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